Fintechs are booming, and our home-grown battlers are sticking it to the big guys.
This week the 2021 Global Fintech Rankings were released, with Australia rising two places to be ranked 6th in the world and 2nd in the Asia Pacific region, behind Singapore. The new position beats out traditional powerhouses of innovation such as Sweden, The Netherlands and Germany. Not surprisingly, the USA remains in the top spot for fintech desirability.
The index, which claims to be the world’s first real-time ranking of fintech ecosystems and fintech companies globally, identifies emerging hubs, fintech companies and trends across more than 264 cities in 83 countries. The rankings include over 11,000+ businesses and incorporate data from host findexable’s own records, collated and verified by a Global Partnership Network including Crunchbase, StartupBlink, and SEMrush.
The country and city rankings are calculated by findexable’s proprietary algorithm, developed in conjunction with data partner StartupBlink. The system determines city and country scores using quantifiable data, from reliable sources, which they say ignores subjective inputs such as interviews or industry opinions.
The Global Fintech Index then scores each location on a number of factors — including the quantity of privately owned fintech companies, the quality of those companies and the general local business environment.
The index also ranks global cities and, of the Australian contingent, Sydney leads the pack — coming in at a respectable 11th, also up two places. Melbourne is the next local city, up seven spots at 25th.
This comes at a time when Australian fintechs generally are punching above their weight, with local players attracting big investments. Recently, Melbourne-based payments company Zeller announced it had now raised A$81M within 12 months, claiming the title of Australia’s most valuable pre-launch startup at A$400 million.
2020 was a bumper year for Aussie fintechs, too with KPMG data identifying a net 104 new Australian financial technology businesses emerging over the course of the year, despite some of the most challenging conditions in our history.
According to Statista, in the fourth quarter of 2020 the investment value in the fintech industry in Australia amounted to around US$1.04B, almost a billion US dollars more than that recorded in the previous quarter.
Go you good thing!